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Where Taxpayers and Advisers Meet

How is tax on UK Unit Trust Interest Calculated

robertiac1
Posts:28
Joined:Mon Mar 23, 2015 7:40 pm
How is tax on UK Unit Trust Interest Calculated

Postby robertiac1 » Mon Mar 23, 2015 7:57 pm

I am looking at a consolidated tax certificate from Investec from the share portfolio of a deceased estate, trying to make sense of an IR185 form, and one of the entries on the Investec certificate is UK Unit Trust Int, with the figures Gross = 573.07 Income Tax = 76.28 Net Amount/Dividend =496.79.

I thought interest was taxed at 20% which would be 144.61 so I am puzzled by by the 76.28 figure. I would be grateful for an explaination. Also as this is not savings income, on the IR185 would this go in box 18 Dividend income afer that taken off?

A supplementary question is that there is an entry Overseas Dividends Gross= 328.25, Income tax = 0 Net Amount/Dividend = 328.25. But there is not a box for Overseas Dividends, so where does this go? Apologies if this is in the wrong forum for these questions.

welshtrustees
Posts:41
Joined:Tue Jun 18, 2013 7:17 pm

Re: How is tax on UK Unit Trust Interest Calculated

Postby welshtrustees » Fri Mar 27, 2015 10:20 am

Possibly the consolidation includes some bonds or bond funds that pay interest gross and some net of tax and so this is a blended number. Interest, as opposed to dividends, from funds is saving interest and goes in box 17. Foreign dividends go in box 18 where it says "dividends from Foreign Companies that do not qualify for UK tax credit". UK Dividends go in box 21.


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